Gner News

Sea Containers Ltd. Announced that, in order to achieve a financial restructuring, Sea Containers Ltd and two subsidiaries, Sea Containers Services Ltd and Sea Containers Caribbean Inc, have voluntarily filed for protection under Chapter 11 of Title 11 of the United States Bankruptcy Code. The filings were made on October 15 in the U.S. Bankruptcy Court for the District of Delaware. Other than the two subsidiaries listed above, no other subsidiary company within the group has filed for protection. Operating subsidiaries such as Great North Eastern Railway (GNER), the U.K. rail operator, and the SeaStreak ferry services in New Jersey, will continue their normal day to day operations. GE SeaCo, the joint venture container leasing business, is

Sea Containers is planning a comprehensive financial restructuring that would see a debt-for-equity swap follow the sale of its ferry operations later this year. The company is working on a business plan to sell off all group assets except its container leasing interests and the GNER east coast mainline rail business to cut its $1.3b debt burden to between $500m and $600m. Key to the plan is the sale of its Silja ferry operations in the Baltic, along with 10 other vessels. Société Générale is handling negotiations and is hopeful of a deal within weeks valuing Silja at some $630m. Sea Containers has a highly leveraged structure - its market capitalization stood at $190m at the end of last week. Last year the company invited offers from potential buyers.

Sea Containers Ltd. marine container lessor, passenger and freight transport operator and leisure industry investor, said today that it has received a number of inquiries about the recent fall in the company's common share price. James B. Sherwood, president, said that he was mystified because the company had an excellent fourth quarter in 2002 and its earnings for the year will be significantly higher than the $27.9 million ($1.40 per common share diluted) reported for the nine months ended September 30, 2002. This will represent a huge improvement over the net income of $4.5 million ($0.24 per common share diluted) reported for the full year 2001. Sherwood said that the 2002 results were currently under audit and the company would announce its results late in March as customary.